FOURTH QUARTER 2017 Martin Lundstedt, President and CEO

Volvo Group Headquarters

Net sales +11% (+16% excl. currency)

Continued improved profitability for the Group - Trucks’ adjusted operating

margin 9.5% (8.7) - Construction Equipment’s

adjusted operating margin 10.9% (3.8)

Highest Net sales and Operating income so far for a Q4

Fourth quarter 2017 2

Volvo Group FOURTH QUARTER HIGHLIGHTS

*Adjustments, see note 6 in Q4 report: Q4 2016: Gain on sale of real estate SEK 1,371 M Q4 2017: No adjustments

NET SALESSEK bn

Q4 Q1 Q2 Q3 Q4

12 months 335 bn

82.691.7

ADJUSTED OPERATING MARGIN*%

Q4 Q1 Q2 Q3 Q4

12 months 8.9%

6.9%8.0%

Volvo Group Headquarters Fourth quarter 2017 3

Volvo Group VOLUME DEVELOPMENT IN THE FOURTH QUARTER

Total Change

Volvo 34,293 +6,359

UD 5,597 +441

Renault Trucks

9,949 +804

Mack 5,112 +993

Total Change

Volvo 8,749 +1,880

SDLG 7,060 +3,334

TRUCK DELIVERIESUnits HD/MD

0,000

10,000

20,000

30,000

40,000

50,000

60,000

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

+8,597+19%

12 months 186,294MACHINE DELIVERIESUnits

0,0002,0004,0006,0008,000

10,00012,00014,00016,00018,00020,000

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

+5,216+49%

12 months 64,127

Volvo Group Headquarters Fourth quarter 2017 4

Volvo Group SERVICE SALES DEVELOPMENT

TRUCKS BUSES VOLVO PENTA CONSTRUCTION EQUIPMENT

SERVICE SALESSEK bn

02468

101214161820

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

18.3

12 months 71.7 bn

+3%+8% ex FX

17.816.3

Volvo Group Headquarters Fourth quarter 2017 5

Trucks

• Good demand

• Stretched supply chain

• New trucks in NA well received – production change-over underway

• Sales start of medium-duty electric trucks in 2019

Volvo Group Headquarters Fourth quarter 2017 6

Trucks GREAT RECEPTION OF THE NEW TRUCKS IN NORTH AMERICA - CHANGE-OVER IN PRODUCTION UNDERWAY

Volvo VNL North America Mack Anthem North America

Volvo Group Headquarters Fourth quarter 2017 7

Trucks MARKET ENVIRONMENT

NORTH AMERICA HD

BRAZILHD

0

100

200

300

400

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

2017: 244’Forecast 2018: 280’

0

100

200

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

2017: 32’Forecast 2018: 45’

0

100

200

300

400

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

2017: ~307’Forecast 2018: 310’

0200400600800

1 0001 2001 4001 600

03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

China

India

Japan 2017: 1 346’Forecast 2018: 1 150’

2017: 334’Forecast 2018: 340’

2017: 96’Forecast 2018: 85’

ASIAHD+MD

EUROPEHD

Volvo Group Headquarters Fourth quarter 2017 8

Trucks MARKET SHARES HD% 2017 2016

NORTH AMERICA

9,9 8,3 7,8 7,3

BRAZIL

JAPAN

17,0 19,0

16,1 15,49,4 8,5

2,0 3,3

AUSTRALIA

SOUTH AFRICA14,0 15,3

8,7 10,3

EUROPE EU28, YTD NOVEMBER

16,916,8

8,0 8,6

Volvo Mack

Volvo

Volvo Renault Trucks

UD

Volvo UD

MackVolvo UD

18,9 18,4

Volvo Group Headquarters Fourth quarter 2017 9

Trucks HD/MD: ORDERS +28% AND DELIVERIES +19%

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Orders Deliveries

EUROPE

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Orders Deliveries

NORTH AMERICA

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Orders Deliveries

SOUTH AMERICA

Orders +84%Deliveries +28%

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Orders Deliveries

AFRICA & OCEANIA

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Orders Deliveries

ASIA

Orders +100%Deliveries +33%

Orders -14%Deliveries -1%

Orders +22%Deliveries +14%

Orders -16%Deliveries +24%

Volvo Group Headquarters

• Market growth across all regions

• Orders up 48% and deliveries up 49%

• Transformation program continues to yield result

Fourth quarter 2017 10

Construction Equipment

Volvo Group Headquarters Fourth quarter 2017 11

Construction Equipment NEW RANGE OF VOLVO BRANDED RIGID HAULERS

Volvo Group Headquarters Fourth quarter 2017 12

Construction Equipment MARKET ENVIRONMENT

0

100

200

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Forecast 2018: 0% to +10%

NORTH AMERICA

SOUTH AMERICA

0

100

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Forecast 2018: 0% to +10%

0

100

200

300

400

500

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Forecast 2018: +10% to +20%

CHINA

0

100

200

300

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Forecast 2018: 0% to +10%

ASIA (excl. China)

0

100

200

300

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Forecast 2018: 0% to +10%

EUROPE

Volvo Group Headquarters Fourth quarter 2017 13

Construction Equipment ORDERS +48% AND DELIVERIES +49%

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Orders DeliveriesQ4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Orders Deliveries

EUROPENORTH AMERICA

SOUTH AMERICA

Orders +86%Deliveries +6%

AFRICA & OCEANIA ASIA

Orders +59%Deliveries +11%

Orders +84%Deliveries +68%

Orders +8%Deliveries +14%

Orders +76%Deliveries +77%

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Orders Deliveries

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Orders Deliveries

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Orders Deliveries

Volvo Group Headquarters Fourth quarter 2017 14

Buses

• Mixed market development

• Order intake +34% across regions

• Deliveries of the new 8-litre chassis platform for Asian markets started

• Largest order ever of complete electric hybrid traffic solutions to Belgium

• Order decrease by -28%, delivery increase by 1%

• 50 hybrid buses to Singapore

• Partnership to test electric autonomous buses in Singapore

Volvo Group Headquarters

• Sales growth in both industrial and marine segments

• Order increase by 17%, delivery increase by 11%

• Good inroads into the agricultural segment

Fourth quarter 2017 15

Volvo Penta

Beet harvester powered by Volvo Penta

FOURTH QUARTER 2017 Jan Gurander, deputy CEO and CFO

Volvo Group Headquarters Fourth quarter 2017 17

Volvo Group NET SALES PER MARKET

NET SALESSEK bn

Currency -3.7 bn

South America

+3.5

Q4 2016

91.7

Asia

-0.0

Africa & Oceania

Q4 2017

+0.5

Europe

+3.282.6

North America

+2.0

Volvo Group Headquarters Fourth quarter 2017 18

Volvo Group ADJUSTED OPERATING INCOME PER BUSINESS AREA

*Adjustments, see note 6 in Q4 report: Q4 2016: Gain on sale of real estate SEK 1,371 M Q4 2017: No adjustments

ADJUSTED OPERATING INCOME*SEK M

Buses

+1,322

TrucksQ4 2016

+31

Volvo Penta

7,334*

Volvo CE

+21

Financial Services

+1,042

-765+22

Q4 2017Group Functions & Other

5,660*

Currency -778 M

Volvo Group Headquarters Fourth quarter 2017 19

Volvo Group ADJUSTED OPERATING INCOME CONTRIBUTORS

+ Truck and construction volumes

- Higher selling and admin. cost - R&D - Stretched supply chain

*Adjustments, see note 6 in Q4 report: Q4 2016: Gain on sale of real estate SEK 1,371 M Q4 2017: No adjustments

Cash R&D

Q4 2016

+1,655

Gross income

-362-203 -112

R&D capitaliz-

ation

-299

Selling Admin.

+995

Other Q4 2017

5,660*

7,334*

ADJUSTED OPERATING INCOME*SEK M

Currency -778 M

Volvo Group Headquarters Fourth quarter 2017 20

Volvo Group – Industrial Operations CASH FLOW

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2.2

OPERATING CASH FLOWSEK bn

12 months SEK 28.4 bn

INVESTMENTS IN PPE SEK bn

12 months SEK 5.7 bn

2.51.9

CASH FLOW EFFECT FROM CHANGES IN WORKING CAPITALSEK bn

Acc

ount

sre

ceiv

able

Inve

ntor

ies

Trad

e pa

yabl

es

Oth

er

Tota

l cha

nge

-2.9 0.5

7.6

1.4

6.614.7

4.9

14.4

Volvo Group Headquarters Fourth quarter 2017 21

Trucks NET SALES

• Delivered HD/MD trucks +19%:

- North America +28% - Europe +14%

• Net sales currency-adjusted +16%:

- vehicles +18% - services +9%

Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417

60.854.555.1

+12%

NET SALESSEK bn

12 months 216.5 bn

Volvo Group Headquarters Fourth quarter 2017 22

Trucks ADJUSTED OPERATING INCOME

ADJUSTED OPERATING INCOME*SEK bn

4.45.84.8

12 months 20.4 bnCurrency -377 M

ADJUSTED OPERATING MARGIN*%

9.5%8.7%7.9%

12 months 9.4%

+ Higher volumes

- Selling cost- Higher R&D cost- Stretched supply chain

Q4 2016 Q4 2017

4,754

5,796

ADJUSTED OPERATING INCOME*SEK M

*Adjustments, see note 6 in Q4 report: Q4 2016: Gain on sale of real estate SEK 71 M Q4 2017: No adjustments

Volvo Group Headquarters Fourth quarter 2017 23

Construction Equipment NET SALES

• Delivered machines +49%: - Volvo +27% - SDLG +89% - large and medium +51% - compact +41%

• Net sales currency-

adjusted +34%: - machines +39% - services +11%

Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417

16.7

13.1

11.0

+28%

NET SALESSEK bn

12 months 66.5 bn

Volvo Group Headquarters Fourth quarter 2017 24

Construction Equipment ADJUSTED OPERATING INCOME

ADJUSTED OPERATING INCOME*SEK M 12 months 7,917 M

Currency -324 M

ADJUSTED OPERATING MARGIN*% 12 months 11.9%

Q4 2016 Q4 2017

ADJUSTED OPERATING INCOME*SEK M

-191

1,816

494

10.9%

3.8%

-1.7%

494

1,816

+ Higher volumes+ Capacity utilization

*Adjustments, see note 6 in Q4 report: Q4 2016: No adjustmentsQ4 2017: No adjustments

Volvo Group Headquarters Fourth quarter 2017 25

Buses NET SALES & ADJUSTED OPERATING INCOME

• Net sales currency-adjusted -8%:

- vehicles -11% - services +8%

• Adjusted operating

income: + service sales + operational efficiency - S&A

• Adjusted operating margin* 4.1% (3.3)

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ADJUSTED OPERATING INCOME*SEK M

294 288266

12 months 928 MCurrency -89 M

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

NET SALES SEK bn 12 months 26.1 bn

7.38.0

7.0

*Adjustments, see note 6 in Q4 report: Q4 2016: Gain on sale of real estate SEK 41 MQ4 2017: No adjustments

Volvo Group Headquarters Fourth quarter 2017 26

Volvo Penta NET SALES & ADJUSTED OPERATING INCOME

• Net sales currency-adjusted +14%:

- engines +17% - services +6%

• Adjusted operating

income: + Higher sales + Product mix

• Adjusted operating margin* 7.0% (6.5)

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

NET SALES SEK bn 12 months 11.1 bn

2.2 2.42.7

ADJUSTED OPERATING INCOME*SEK M

140 187156

12 months 1,439 MCurrency -30 M

*Adjustments, see note 6 in Q4 report: Q4 2016: No adjustmentsQ4 2017: No adjustments

Volvo Group Headquarters

Financial Services NEW FINANCING AND PROFITABILITY

Fourth quarter 2017 27

ROE12 months, %

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

14.3%13.7%13.4%

12 months 57.9 bnADJUSTED OPERATING INCOME*SEK M

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

534588567

12 months 2,192 M

NEW FINANCINGSEK bn

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

14.9 15.6 17.1

1

1) Excluding positive revaluation effect in Q4 2017 ofSEK 897 M related to new tax rates in USA. ReportedROE including revaluation effect was 22.6%.

Full Year 2017

Volvo Group Headquarters Fourth quarter 2017 29

Volvo Group ADJUSTED OPERATING INCOME FY2017

+ Higher volumes in Volvo CE + Higher truck volumes + Higher service sales + JV profitability

- Higher S&A expenses - R&D - Stretched supply chain

FY2016 OtherCash

R&DAdmin.

+9,855

R&D capitaliz-

ation

Gross income

-502 -965 -1,715

Selling

-521+2,681

FY2017

21,094*

29,928*

ADJUSTED OPERATING INCOME*SEK M

Currency -362 M

*Adjustments, see note 6 in Q4 report: 2016: Gain on sale of IT operation 885, Provision for EU investigation -2,524, Gain on sale of real estate SEK 1,371 M2017: Capital gain on sale of shares in Deutz SEK 400 M

Volvo Group Headquarters Fourth quarter 2017 30

Volvo Group FY2017 HIGHLIGHTS

Highest Net sales and EBIT so far:

- Net sales: SEK 335 bn - EBIT: SEK 30 bn

Operating cash flow: SEK 28 bn

Net cash position: SEK 26 bn

Proposed dividend of SEK 4.25 (3.25)

NET SALESSEK bn

2013 2014 2015 2016 2017

335273

ADJUSTED OPERATING MARGIN*%

2013 2014 2015 2016 2017

8.9%

3.4%

*Adjustments, see note 6 in Q4 report 2017 and 2016 annual report.